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Thomas Jefferson University Hospital to restructure into three divisions

by John R. Fischer, Senior Reporter | January 19, 2023
Business Affairs
Jefferson Health is restructuring its hospitals from five into three separate regions.
Under its new CEO, Thomas Jefferson University Hospital – Jefferson Health will be restructured from five regions into three as part of a plan to remedy the hospitals’ financial challenges.

Each of the three divisions will be led by a new leader, with more changes to follow, to help the hospital better manage rising costs for labor, pharmaceuticals, and other supplies, according to The Philadelphia Inquirer.

The new structure also comes with layoffs, mostly among executives, with two notable ones being Richard J. Webster, president of Thomas Jefferson University Hospital in Center City and Magee Rehabilitation Hospital, and Alison Ferren, president and chief operating officer of Abington Health.

The regions include:

  • North Region: Einstein Medical Center Montgomery, Abington Hospital, Bucks Hospital, Frankford Hospital, Lansdale Hospital, and Torresdale Hospital
  • Central Region: Einstein Medical Center Elkins Park, Einstein Medical Center Philadelphia, Jefferson Hospital for Neuroscience, Methodist Hospital, Magee Rehabilitation Hospital, MossRehab, and Thomas Jefferson University Hospital
  • East Region: Cherry Hill Hospital, Stratford Hospital, and Washington Township Hospital

“Today, many of our hospitals at Jefferson really compete with one another. This new structure will really lend itself well to making our clinical programs knit together in a more integrated way,” CEO Joseph Cacchione, who came to Jefferson in September, told The Inquiry.

Headquartered in Philadelphia, Jefferson grew from three hospitals to 18 between 2015 and 2021. It also owns the Medicaid and Medicare insurer Health Partners Plans and made $7.9 billion in revenue in the 2021-2022 fiscal year, as of June 30.

But like other healthcare systems, it has experienced financial difficulties, incurring losses in two of the last three years. Pandemic relief aid from the government spared it from experiencing losses in all three.

Brian Sweeney, who runs Jefferson’s New Jersey hospitals, will oversee the north region. He will continue to manage the Jersey facilities, which make up the East Region, on an interim basis.

Running the central region, which includes two of Jefferson’s three largest hospitals, will be Dixie James. James is currently the president and chief operating officer of Einstein Medical Center Philadelphia.

The leaders will report to Ken Levitan, Jefferson’s interim chief operating officer and a former Einstein executive.

The new structure does not include Rothman Orthopedic Specialty Hospital and Physicians Care Surgical Hospital, which Jefferson controls as part of joint ventures.

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